METALS-London copper gains as dollar slips

SYDNEY, Oct 31 (Reuters) - London copper turned positive in late Asian trading on Tuesday as the U.S. dollar weakened.

Copper started the week by pulling away from the previous session’s two-week low as a retreat in the dollar tempted buyers back to the metal.

However, a start to Tuesday’s market activity saw the dollar strengthen against a basket of currencies, which encouraged enough profit-taking in less-active Asian trading to drive the metal into negative territory.

A stronger dollar can prompt speculators to sell dollar-denominated copper positions and book profits on the currency spread, while a weaker currency attracts buyers.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange was up 0.3 percent to $6,892.75 tonne by 0727 GMT, building on Monday’s gains.

* CODELCO: The world’s biggest copper miner, Codelco [RIC:RIC:COBRE.UL], has raised its 2018 physical copper premium to European buyers to $88 a tonne from the $80 to $85 a tonne range this year, copper industry sources said.

* CHINA STRUGGLES: Factories in China’s industrial heartland making everything from steel sheet to tofu and ceramics are struggling with soaring costs or facing closure as they wait for authorities to approve new gas-powered boilers, five industry executives told Reuters.

* DOLLAR WEAKER: the dollar index, which tracks the currency against a basket of six major rivals, was down 0.01 percent .